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Showing posts from May, 2018

Does Donald Trump Want a Financial Depression?

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There are many thoughts and policies floating around in the Trump administration that could lead to a financial depression. The disturbing issue for me is that the Austrian Economists who are influencing the administration do not believe that a financial depression is that big of a deal.

After this issue is discussed, the concept of the strong dollar under Trump has to be addressed. The dollar is the reserve currency, and there is a tight, and potentially dangerous monetary regime regarding the use of it as the reserve. We can take away interesting concepts from Jeffrey P. Snider, Scott Sumner and Gary Shilling.

As for financial depressions, it is true that Austrians point to the Depression of 1921 as an example of how quick you can recover from a real Depression. But there has to be enough credit in society to bounce off a financial depression like that one. Retooling of industry and credit availability caused it to be short lived. But financial depressions that are credit based can…

My Wife's Ancient Jewish Connection

My wife has inherited very little modern Ashkenazi Jewish DNA. Her brother inherited 2 percent modern AJ and or Sephardic, according to ancestry.com and she inherited less than 1 percent AJ and/or Sephardic at Ancestry.com as well.

However, I uploaded her kit to Gedmatch, and clearly, she has ancient Jewish, Assyrian/Babylonian ancient DNA. This means that it is likely that her family as a whole did not go back to Israel with Ezra, and for the most part mine did not either.

There are tests for Jewish people, Ashkenazi and Sephardic, who were in the Roman diaspora, but the Assyrian diaspora took place in 800 years before Christ and the Babylonian dispersion took place 600 years before Christ. The Roman dispersion took place between 70 AD and 135 AD approximately.

So here is my wife's Gedrosian K3 ancient test using Oracle 4:

Gedrosia K3 4-Ancestors OracleThis program is based on 4-Ancestors Oracle Version 0.96 by Alexandr Burnashev.
Questions about results should be sent to him at:…

Fed and Trump Fail the Eurodollar Market

The Eurodollar market is a huge offshore money market that also operates in NYC through international banks. This market uses American dollars deposited offshore (Eurodollars) and has, over time, exposed the Fed as a big failure. It turns out that the Eurodollar market has revealed its disappointment over the years with QE and with the Fed. It has shown that QE is not really money printing. First, an explanation of the Eurodollar market is helpful:


One of the biggest reasons the eurodollar market is popular is that eurodollar deposits are not subject to American banking regulations. Because the deposits are outside of the United States, the banks holding these deposits do not have to adhere to the Federal Reserve's reserve requirements, and the Securities and Exchange Commission does not regulate eurodollar securities.Many banks and corporations find the lack of regulation attractive because it lowers costs, increases flexibility, and allows for creative structuring of financial in…

Unstable Repos and the London Connection

I ran across a great article by Jeffrey P. Snider that was not posted to Talkmarkets. He has many astute articles regarding Fed behavior posted here at Talkmarkets and people should read them anytime they have the opportunity to do so. But this article posted elsewhere was certainly an eye opener to me. It has to do with a subject he often covers on our website, repo fails.

I want to first mention that at the end of this article we can see what this disturbing wholesale financial market is doing to the world economy, and we can see that most of this trading is done in the Square Mile, as London is the seat of world finance.*

Repo fails result from counterparties failing to deliver US treasury bonds for a deal. Often, the counterparties see treasury bonds of various maturities being more valuable than the cash they would get in the loan they request. When the bonds are special, they are in massive demand. They are hoarded. When the repo failures reached a peak, in the liquidation of t…